Analysis Of The Economic Theory And Personal Fudge Factor

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Economic Theory and Personal Fudge Factor In the Economic Theory, cheating is a straightforward concept. It is a simple cost vs benefit analysis. Three questions are asked: What is the probability of being caught? How much do I stand to benefit from cheating? And lastly, how much punishment would I receive if caught? Mr. Dan Ariely explains how each person weights these options and completes an analysis before making their personal decision to commit the crime or not. His idea of the “Personal Fudge Factor” is a revealing aspect of his experiment. During Mr. Ariely’s study, he tempted students to cheat with varying quantities of money and varying levels of ease to cheat. Unexpectedly, he found that instead of finding a few who cheated a lot, …show more content…

His results were very revealing and demonstrated several variables which promoted either higher or lower levels of cheating. The study found that if someone from the “in” crowd blatantly cheated and didn’t receive any repercussions, then the majority would follow suit with cheating. However, he found that if the individual cheating in front of everyone was an unknown person or belonged to a different group, the controlled group wouldn’t follow with cheating. Mr. Ariely reveled that humans are more apt to bend the moral code when others are already doing so unless the one pioneering the cheating is a paid actor in but not apart of the controlled group. In summery, when someone takes the first step and cheats in a group, it creates an atmosphere where it is acceptable and natural to cheat. In contrast, when a stranger among the group cheats, although, there is an increase in awareness of the cheating, there is less …show more content…

He explains that each person has countless intuitions throughout their lifetime, however, many of these intuitions are wrong. Obviously, people have a tendency to believe that their intuition is faultless when compared to someone else’s. Although this is interesting, the intriguing aspect was that often times people’s intuitions are attached to personal heartstrings. Years after being healed from his burns, Mr. Ariely went back to the nurses who had daily debrided and removed his bandages. His startling discovery was that the nurses had removed the bandages quickly to minimize the duration of pain because their personal intuition told them that this was the least overall painful way of completing the task. Given the nurses felt their intuition was right and they were performing the task as painless as possible, it would have been emotionally difficult to perform an excruciating painful experiment on another human being to see if there was a better way. The fear and torment of possibly adding more pain to a person by slowly removing the bandages further solidified the nurses’ intuition. Intuition is a heavy driving force and factor behind most decisions. However, if these intuitions aren’t tested appropriately, further advancement and progress of society isn’t going to

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